Email to the Boss and answer Investor Inquiry
Post# of 263
Investor Inquiry Ucore Growth Model & Response Jim McKenzie
Hi all
I asked Mark about future share price appreciation with respect to MRT branching out. He sent me an email from a fellow shareholder and response from Jim McKenzie himself. He got permission to share the response. Very telling....enjoy.
Pimpboss
Investor Inquiry re Ucore Growth Model
Subject: Your Future operation
My wife and I are stockholders in your Company for several years now. I started purchasing your stock prior to your involvement in the MRT process. I have researched your Company and kept up with all you have been doing over these past several years. I believe in what you are and have been doing and have been continually purchasing stock even when it looked like I should not.
I see an operation that is serious about what they are doing and bringing in the top people to accomplish their goal and I am proud to be a stockholder in your Company. I follow all press releases by you as well as other news outlets and analyst. Some such as Seeking Alpha don’t think what you are doing will work but many others are reporting on what you are doing with a favourable eye.
I look at it this way if you were an over night operation you would not be bringing in the people your bring in, making the plans your making, or continuing digging in like you have been unless you were serious about the future for this processing operation and that of your mining property at Bokan Mountain.
I have been accumulating stock over these past years and hoping that it will add to or help in our retirement. My concern is at your latest Interview done at the May Conference it was mentioned that the clean processing operation could possible be split of into a separate company. What would happen to stockholders like my wife and I who have been regularly purchasing stock because of this operation and Bokan Mine. Would the stock just stay with the mine that is currently not in operation because of low rare earth prices or would it be split out with the processing of rare earths operation.
I believe in your complete operation and at this point would not want to lose out on something I feel that I have been growing with.
McKenzie Response:
Dear Mr. XXXXXXX
Thank you for your kind words. Normally investor inquiries are responded to by our VP of Business Development and Investor Relations (Mark MacDonald). However, with dedicated long term shareholders, I prefer to respond personally, in order to impart assurances at the highest level.
You are absolutely correct in your appraisal of Ucore's outlook. Our management philosophy is to be in this venture for the "long haul", as they say, and all of our strategic maneuvers reflect this philosophy. Our Alaska holdings are the highest grade heavy REE resource on US soil, and a strategic American asset of great value. Our Molecular Recognition Technology platform is American ingenuity at its apex, leading a disruptive revolution in materials science that could well affect the entire mining and clean energy space. In my estimation, as a Ucore shareholder, you are well positioned within the enterprise by investing in the early stages, when under-valuations are at their most prominent.
Regarding your concerns of a spin-out enterprise, let me assure you that such an event would be quite positive for you as a wealth-building exercise. For each new company that we prospectively launch in order to concentrate on ancillary metal spaces (lithium, cobalt, tungsten, etc.), you will receive an proportionate (and possibly exponential) increase in your share holdings, since the share structure of the "mother ship" will be replicated in each of its offspring. If we launch just one spin-out, your share units will effectively double. Two spin-outs will mean that your share units will effectively triple, and so forth. So, for example, if you own 100,000 shares in Ucore (the mother ship), and we spin out an additional enterprise to concentrate solely on a specific sector such as rare earths, lithium, precious metals, etc., you would receive an additional 100,000 shares for each of the offspring enterprises.
To be clear, for all intents and purposes, the company you own shares in right now (Ucore) intends to retain its position as the mother ship. So you are already positioned exactly where you want to be. There is no risk to you that the technology (nor any other asset of Ucore) can be spun off into an enterprise in which you have zero ownership. With each additional venture that Ucore launches, you will obtain additional no-cost shares in each spin-out. You can trade these shares as you wish, while retaining your stake in the central enterprise. As long as you continue to hold shares in the central company, your exposure to our global growth plan remains intact.
There is a possibility that Ucore, as the mother ship, will undergo a re-branding in order to reflect the breadth of our technological opportunities. We are tentatively considering the name "SuperLig® America" or SLA as the revised name for Ucore, with a potential NASDAQ listing to reflect its status as a growing industrial. With the hub and spoke model (licensed spin-off companies), SLA will have the opportunity to grow its valuation on an exponential curve ( a form of “crowd – sourcing, if ever there was one). SLA will own a sizable stake in each of the new-born subordinate ventures. It will also retain perpetual SuperLig royalty rights, in the form of license fees payable by each of the spin-out siblings to the parent.
The entire ecosystem will be connected. By retaining ownership in SLA shares, you will retain exposure to the upside of the entire corporate family (regardless of whether you retain your shares in each of the subordinate ventures). In turn, each subordinate venture will have the ability to raise capital and incur risk independently of SLA, thereby indemnifying SLA against any potential down-turn in the commodity traded by any of the appendage companies.
Please keep in mind that the foregoing spin-out (or "hub and spoke" strategy is a well-documented means of unlocking hidden shareholder wealth, especially in an enterprise such as ours, with such massive growth potential. For example, a SuperLig® molecule dedicated to the lithium space, placed in a corporate vehicle dedicated to Li, will garner much more investor interest (and management acumen) within a dedicated vehicle. This, as opposed to being trapped as a "line item" within an extensive and ever growing menu of SuperLig® intellectual properties. IBC already has over 70 ligands on the shelf, many of them potentially high- profit molecules, but which nonetheless remain largely ignored due to a lack a dedicated management and sales team. The job of SLA will be to unlock this already existing but untapped potential.
So, the hub and spoke model is built for very fast and very competent growth. Each of our offspring will capable of specializing in its respective space, and with the possibility of becoming a giant in its own right. The best news of all, is that you will be able to obtain liquidity from each appendage (for example, a well-timed selling of your shares in a possible titanium spin-out), without sacrificing your shares in the central enterprise.
Charles, again, thank you for your question, and your ongoing dedication to this remarkable enterprise. Ucore is positioned at the crest of a sea change in disruptive industrial technology, which may well effect sectors as far reaching as clean energy, super-computing, health care, national security and much more. We look forward to the opportunity of meeting and exceeding your expectations. Your loyalty is well placed, in my opinion, and appreciated more than you know.
Sincerely,
Jim McKenzie
President & CEO
Ucore Rare Metals Inc.